The Favorite: Real Quiet won the Kentucky Derby as a minor long shot and in the Preakness Stakes was the second choice. In both races, he defeated an up-and-coming colt with a big closing kick, Victory Gallop. The Spoiler: Victory Gallop, after a pair of runner-up efforts, was poised to turn the tables on his rival.
Both hedge funds and private equity funds appeal to high net worth individuals (many require minimum investments of $250,000 or more), traditionally are structured as limited partnerships and involve paying the managing partners basic management fees plus a percentage of profits.
Canada Pension Plan Investment Board, Teacher Retirement system of Texas, Washington state investment board and Virginia Retirement Board are few examples of large investors (limited partners) in the world who have invested in Private equity funds. So LP would commit capital to Private equity firm and demands a return for it. Private equity has performed far better than the public markets in past.